the book of discipline and the local church talk to chinese annual conference 3 july 2010

THE BOOK OF DISCIPLINEAND THE LOCAL CHURCH

Talk to

CHINESE ANNUAL CONFERENCE

3 July 2010

SIGNIFICANT CHANGES IN BOD – LARGELY TO IMPROVE GOVERNANCE :

Why?

Charity Sector Scandals (NKF 2005) attracted public attention & greater Government scrutiny

Civil Servant made 1st full-time Commissioner of Charities (“COC”) with increased supervision

New Charity Council issued CODE OF GOVERNANCE For Charities & IPCs in Nov 2007 (“COG”) [being reviewed in 2010]

COG applicable to religious groups (though derived from corporate governance model)

EVALUATION CHECKLIST (“EC”) – annual submission to COC required

The BOD & Local Churches 2

FUNDAMENTAL PRINCIPLES:

Every Charity owes obligations to its stakeholders

Charity’s Governing Body [IN LOCAL CHURCH – THE LCEC] must discharge these obligations– #1 Duty to Act Honestly– #2 Transparency of Decision-Making– #3 Accountability for Decisions


NOT ENOUGH JUST TO “FOLLOW THE RULES”

Everyone must always try to up-hold underlying principles Don’t act like the Pharisees! Always try to do the right thing, the proper way [principle:

ACT HONESTLY] When we make mistakes, own up

[principle: ACCOUNTABILITY] Never cover up! [principle: TRANSPARENCY] HONESTY & ACCOUNTABILITY often requires some

INDEPENDENCE


LOCAL CHURCH STRUCTURE

Local Conference has general oversight over LCEC ¶147.1 [ akin to the “General Meeting” ]

Local Conference mbs (besides LCEC): ¶146.2– local preachers– diaconal ministers– honorary stewards (no vote unless elected to LCEC positions)– retired ordained ministers holding mbship– ministers under voluntary location– PPRSC chairperson


Local Conference DIFFERENT FROM LCEC Chaired by: o District Superintendent or

o Elder designated by DS ¶146.4(principles: ACCOUNTABILITY, INDEPENDENCE)

DS has final authority to decide all questions of law submitted in writing, subject to appeal to President at next Annual Conference ¶552.15 & ¶707.4

(principle: ACCOUNTABILITY)

Notice of Local Conference: ¶146.7 14 days notice by pulpit announcement, weekly

bulletin, local church publication or mail (at least 2 of these modes)

(principle: TRANSPARENCY)


Local Conference at least twice each year ¶146.3

Special Sessions ¶146.6

only if called – by DS (after consulting Pastor i/c)– by Pastor(s) with written consent from DS

(principles: ACCOUNTABILITY, INDEPENDENCE) Purpose must be stated in Call

(principle: TRANSPARENCY) Only business in harmony with Call to be transacted

(principles: TRANSPARENCY, ACCOUNTABILITY)


Church Conference ¶148instead of Local Conference

Purpose: to encourage broader participation by church members

Called:Only when authorised by DS (maybe after written

request from Local Conference)

(principles: TRANSPARENCY, ACCOUNTABILITY, INDEPENDENCE)


LOCAL CONFERENCE & MAJOR CHURCH BUILDING PROJECTS

Local Conference approval required for major projects (eg. church building, extensions, purchases) ¶411

unless ¶411.3 a) exception applies

(below 10% ave p.a.income over last 3 years)



CHANGES TO DISCIPLINE AFFECTING LCECs #1 TERM LIMITS

TERM LIMITS (principle: ACCOUNTABILITY) : Local Conference has general authority to establish term limits

¶147.6 (read with COG 1.1.6 “Board Renewal”) Compulsory term limits for:

– Church treasurer ¶149.1 e) read with EC Q.3 (COG 1.1.6)– Finance Comm Chairperson ¶149.1 f) read with EC Q.3 (COG

1.1.6)– Governance Comm Chairperson* ¶149.1 i) read with EC Q.3

(COG 1.1.6) (new position)TERM LIMITS balanced by having understudies– LCEC must have Vice-Chair, can have more than one ¶153.4– Asst Treasurer, Finance Comm Vice-Chair (new positions) ¶149.1

e) & f)

CHANGES TO DISCIPLINE AFFECTING LCECs #2 MEMBERSHIP

COMPULSORY LCEC MEMBERSHIP FOR ALL PROGRAMME CHAIRS

(principles: ACCOUNTABILITY, TRANSPARENCY)Missions, Outreach & Social Concerns, Witness & Evangelism, Worship & Music, Disciple & Nuture Chairs must be LCEC members

¶149.1 j) & 153.1 k) read with EC Q.4 (COG 1.2.1) EMPLOYED PROFESSIONAL & MINISTRY STAFF MAY BE

LCEC MEMBERS WITHOUT VOTE BUT CANNOT SERVE AS LCEC CHAIR

¶153.3 read with EC Q.2 (COG 1.1.2)(principles: ACCOUNTABILITY, TRANSPARENCY, INDEPENDENCE)


CHANGES TO DISCIPLINE AFFECTING LCECs #3 ACTING IN CONCERT

LCEC TO ACT IN CONCERT WITH FINANCE COM & OTHER COMMITTEES:

TO ENSURE OVERSIGHT OF KEY AREAS OF GOVERNANCE & OPERATIONS

UNDER DOCUMENTED TERMS OF REFERENCE (principles: HONESTY, ACCOUNTABILITY, TRANSPARENCY)

¶152 read with EC Q.4 (COG 1.2.1) :


CHANGES TO DISCIPLINE AFFECTING LCECs #4 QUORUM

LCEC QUORUM: MINIMUM ONE-THIRD

¶152.3 read with COG 1.3.2



CHANGES TO DISCIPLINE AFFECTING LCECs #5 ATTENDANCE

REGULAR ATTENDANCE: THREE CONSECUTIVE ABSENCES W/O

ACCEPTABLE REASON CREATES VACANCY

¶307.5 read with COG 1.3.3)



CHANGES TO DISCIPLINE AFFECTING LCECs #6 MINUTES

LCEC MINUTES MUST BE KEPT & CIRCULATED TO ALL LCEC MEMBERS “AS SOON AS PRACTICABLE”

¶152.5 read with COG 1.3.1)

(principles : ACCOUNTABILITY, TRANSPARENCY)


CHANGES TO DISCIPLINE AFFECTING LCECs #7 QUALIFICATIONS

CHURCH TREASURER QUALIFICATIONS:

PREFERRED (NOT MANDATORY) TO HAVE relevant accounting qualification OR appropriate financial literacy OR appropriate practical experience

(previous service as Asst Treasurer?)(principle: ACCOUNTABILITY)

¶153.1 g) read with COG 1.1.9The BOD & Local Churches 16

CHANGES TO DISCIPLINE AFFECTING LCECs #8 ANNUAL REPORT

LCEC MUST MAKE ANNUAL REPORT OF ITS DECISIONS TO LAST LOCAL CONFERENCE

(principles: TRANSPARENCY, ACCOUNTABILITY)

¶154.12 read with EC Q.14 (COG 8.1.1)


CHANGES TO DISCIPLINE AFFECTING LCECs #9 GOVERNANCE COMMITTEE

CHURCH GOVERNANCE COMMITTEE CREATED ¶170.6 read with EC Q.4 (COG 1.2.1)

performs functions similar to an Audit Committee in corporate governance context

amenable to LC, not to LCEC

(principles: ACCOUNTABILITY, INDEPENDENCE) Gov Comm Chair a mb of LCEC

(principle: TRANSPARENCY) Gov Comm Chair & all mbs cannot be Church Treasurer or

Finance Comm Chair (principle: INDEPENDENCE) should majority of Gov Comm not sit in LCEC?


CHURCH GOVERNANCE COMMITTEE

not “superior” to LCEC doesn’t “second-guess” LCEC monitors, reviews processes especially

– financial issues– interested person transactions


SUMMARY

EVERYONE MUST PLAY A PART

TRY TO KNOW THE RULES …

BUT ALWAYS KEEP TO THE PRINCIPLES!


ALWAYS KEEP THE PRINCIPLES!

Try to do the right thing, the proper way [principle: ACT HONESTLY]

When we make mistakes, own up

[principle: ACCOUNTABILITY] Never cover up!

[principle: TRANSPARENCY] Remember:HONESTY & ACCOUNTABILITY

often requires some INDEPENDENCE


the book of discipline and the local church talk to chinese annual conference 3 july 2010

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